The Economic Order Decision with Continuous Dynamic Pricing and Batch Supply

Anita van den Berg, P. Jean-Jacques Herings, Hans Peters

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Abstract

In an infinite horizon inventory and sales model, we show that the seller's unique strategy exhibits increasing prices under general conditions on the revenue function. An increasing discount rate leads to an increase of the time interval between order times, but an increase in batch size has an ambiguous effect. 

Original languageEnglish
Pages (from-to)371-376
Number of pages6
JournalOperations Research Letters
Volume45
Issue number4
DOIs
Publication statusPublished - Jul 2017

Keywords

  • Dynamic pricing
  • Economic order decision
  • Inventory
  • COORDINATING INVENTORY CONTROL
  • DEMAND
  • STRATEGIES
  • MODEL

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